ITR submitting: Why taxpayers want to present quarter-wise breakup of dividend earnings?

ITR submitting: Last date for earnings tax return (ITR) submitting for evaluation yr 2021-22 is thirty first December. So, earnings taxpayers are suggested to maintain some modifications made by the earnings tax division in thoughts whereas ITR submitting. Reporting of dividend earnings whereas submitting ITR is one such change {that a} taxpayer cannot afford to overlook whereas submitting ITR for AY 2021-22. Now, taxpayers want to present quarter-wise breakup of their dividend earnings. It will assist them save earnings tax outgo.

Speaking on modifications in dividend earnings tax {that a} taxpayer wants to recollect whereas submitting ITR for AY 2021-22; Amit Gupta, MD at SAG Infotech stated, “Prior to the Financial Year FY21, dividend income up to ₹10 lakh in a particular year was not taxable for the taxpayers as organisations needed to pay a Dividend Distribution Tax (DDT) before making dividend payments. However, those who received dividends of more than ₹10 lakh used to pay only 10 per cent tax on the dividend payout. However, with effect from FY21, the Government has made dividends distributed by an organisation taxable.”

Advising earnings taxpayers to report quarter-wise breakup of dividend earnings whereas submitting ITR for AY 2021-22, Mumbai-based tax and funding professional Balwant Jain stated, “In order to calculate the interest for the default in payment of advance tax liability, taxpayers are now required to give a quarter-wise breakup of dividend income received in a financial year. It will help taxpayer to save its income tax outgo, as taxpayers now need to pay advance tax in the quarter in which the dividend income has been gained.” Balwant Jain went on so as to add that even for a traditional earnings taxpayer, if there’s dividend earnings, it must be reported in quarter-wise breakup in any other case their ITR kind might be rejected.

Echoing with Balwant Jain’s views; Amit Gupta of SAG Infotech stated, “Earlier, exclusion from interest penalty for non-payment of the advance tax on dividend income was there as it was not possible to cite dividend income in advance. It is highly likely that dividend income will be provided pre-filled to taxpayers from this year as the Income Tax department has made it compulsory for the organisations to announce the information of the dividend paid to the department. Noteworthy, if you get the pre-filled data in your ITR, you should check the information clearly.”

In order to keep away from rejection of 1’s ITR kind, the taxpayer must report dividend earnings breakup for the span of:

1] 1st April 2020 to fifteenth June 2020;

2] sixteenth June 2020 to fifteenth September;

3] sixteenth September 2020 to fifteenth December 2020;

4] sixteenth December 2020 to fifteenth March 2021; and

5] sixteenth March 2021 to thirty first March 2021.

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